Budget 2016: Jaitley opens purse-strings, allocates Rs 500 crore to support SC-ST, women entrepreneurs

New Delhi: Government has allocated Rs 500 crore for scheduled caste, scheduled tribes and women entrepreneurs in the Budget under the Stand Up India scheme.

It will also set up a national hub in the Ministry of Micro Small and Medium Enterprises (MSME) in partnership with industry associations to provide professional support to scheduled caste/scheduled tribes (SC/ST) entrepreneurs, Finance Minister Arun Jaitley said while announcing Union Budget 2016-17 in Parliament.

Budget 2016: Jaitley opens purse-strings, allocates Rs 500 crore to support SC-ST, women entrepreneurs

Representational image. Thinkstock

"SC and ST entrepreneurs are beginning to show considerable promise in starting and running businesses... I am happy to inform you that the Union Cabinet has approved the Stand Up India scheme to promote entrepreneurship among ST/SCs and women Rs 500 crore has been provided for this purpose," he said.

The scheme will facilitate at least two such projects per bank branch one in each category of entrepreneurs and will benefit at least 2.5 lakh entrepreneurs in this category, he added.

"We are celebrating the 125th birth anniversary of Shri B R Ambedkar. This must become the year of the economic empowerment for SC/ST entrepreneurs... It is proposed to constitute a national SC/ST hub in the MSME Ministry in partnership with industry associations," Jaitley said.

He said there has been extensive interactions with Dalit India Chamber of Commerce and Industry on building an entrepreneurship ecosystem.

"This hub will provide a professional support to SC/ST entrepreneurs to fulfil the obligations under the Central government procurement policy adopted best practices and leverage the Stand up initiative. The scheme for welfare and skill development of minorities such as multi sectoral development and Ustad shall be implemented effectively," he said.

The Finance Minister said startups generate employment, bringing innovation and are expected to be key partners in Make in India programming.

"I propose to assist their propagation through 100 per cent deduction of profits for three out of the five years for startups set up during April 2016 to March 2019. MAT will apply in such cases," he said.

Jaitley added that capital gains will not be taxed if invested in regulated, notified fund/s and by individuals in notified startups for which they hold majority shares.

Also, a special patent regime has been proposed.

"Research is a driver of innovation and innovation provides a thrust to economic growth. I propose a special patent regime with 10 per cent tax of income from worldwide exploitation of patents developed and registered in India," he said. PTI

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Updated Date: Feb 29, 2016 13:20:38 IST

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